| Thu 28 Jan 2010, 17:42 | | FRT - Faritec Holdings - Changes to financial statements and notice of annual |
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FRT
FRT
FRT - Faritec Holdings - Changes to financial statements and notice of annual
general meeting
Faritec Holdings Limited
Incorporated in the Republic of South Africa
Registration number 1998/004872/06
Share code FRT ISIN ZAE000016838
("Faritec" or "the Group")
CHANGES TO FINANCIAL STATEMENTS AND NOTICE OF ANNUAL GENERAL MEETING
Shareholders are advised that the Group`s annual report, incorporating the
audited financial statements for the year ended 30 June 2009, was dispatched
today and is available on the company`s website (www.faritec.com).
The financial statements have been audited by Charles Orbach and Company, who
whilst not qualifying their audit opinion, have included an emphasis of matter
modification on Faritec`s going concern status. This emphasis of matter arises
out of the opinion of the Directors that, given the operating performance of
the business subsequent to year-end, the company requires funding of at least
R60m in order to execute its business plan. The company has previously
indicated that it is engaged in discussions to raise this funding. This
emphasis of matter has resulted in the reversal of a deferred tax asset
previously recognised (as more fully set out below). However, once the funding
requirements have been met, this deferred tax asset will be recognised.
The annual financial statements contain the following changes to the reviewed
results which were announced on SENS on 23 September 2009:
Annual Reviewed
Financial Results
Statements Announcement
R`000 R`000
Balance sheet:
Deferred tax asset 1,503 37,208
Shareholders` equity 52 216 87 921
Income statement:
Revenue 731 442 727 012
Cost of sales 559 987 555 557
Taxation 6 453 (29 252)
Share statistics:
Loss per share (cents) 61,9 48,1
Headline loss per share (cents) 49,6 35,8
Diluted loss per share (cents) 61,9 48,1
Diluted headline loss per share (cents) 49,6 35,8
Net loss before taxation and Cash flow:
No changes
The Group in its provisional results announcement raised a deferred tax
asset of R37million at year end, arising from the tax loss for the year,
which was available for set off against future taxable profits. This asset
was expected to be recovered based on future profit expectations for the
Group, and at the time of the publication of the provisional results, met
the recognition requirements of IAS 12, Income taxes. The Group has
however, in its trading update and cautionary announcement released on 28
December 2009, advised shareholders that it expects to post a loss for the
six month period ended 31 December 2009, and furthermore, of its funding
requirements to implement its turnaround strategy and plans to meet these
funding requirements. In light of these conditions, the deferred tax asset
no longer meets the accounting standard recognition requirements and has
been reversed. Revenue and cost of sales were amended for a classification
change on the application of IAS 18, Revenue.
A revised abridged report, taking into account the effect of the above
changes, is being released simultaneously over SENS.
The annual report contains a notice of Annual General Meeting for
Faritec, which will be held on Tuesday, 23 February 2010 at Faritec House, 150
Kelvin Drive, Woodmead, Sandton at 15:00pm.
28 January 2009
Designated advisor
Java Capital (Proprietary) Limited
Date: 28/01/2010 17:42:01 Produced by the JSE SENS Department.
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